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Why has the UAE kept interest rates unchanged, and what does it mean for borrowers?

The Central Bank of the UAE (CBUAE) has kept its benchmark interest rate unchanged at 3.65% after the US Federal Reserve maintained its federal funds rate at 3.5%–3.75%. Because the UAE dirham is pegged to the US dollar, the UAE typically aligns its monetary policy with the Fed's decisions. The move means borrowing costs for mortgages, personal loans and business financing are expected to remain stable, providing certainty for consumers and businesses. Analysts said the Fed's decision was supported by moderating inflation and steady economic growth, although elevated oil prices and ongoing geopolitical tensions continue to keep policymakers cautious about future rate changes. Do you think keeping interest rates unchanged is the right decision for the UAE economy, or would you prefer lower rates to make borrowing more affordable? Why?

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Day of Dubai

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